To the quality gurus and continuous improvement heroes: we love quality management and have designed Kodiak Rating based on the belief that true value enhancement is built on a relentless focus on Quality and Value, in all parts of the value chain.

We aid you by:

– Selecting, rating and developing the right suppliers based on the value of provision, performance and progress.

– Mapping and assessing management systems – including automation of reminders for renewals, requests for documentation and feed-back loops.

One of the cornerstones of Kodiak Rating is to enable sourcing and procurement to be done with a higher purpose, and as a means to improve and enhance sustainable business practices in the value chain.

We help you realize responsible and sustainable sourcing by:

– Encompassing sustainability performance and progress as a key indicator of a good supplier

– Safely communicate how your suppliers are working down to the factory-floor

“We quickly and easily integrated demands on responsible and sustainable business practices with our supplier performance management, as well as enhanced our supplier evaluations and supplier assessments practices.”

Kodiak Rating’s supplier relationship management solution aids (but is not limited to) the management of the following risks that may materialize in your supplier’s organizations:

Occupational health and safety

The construction industry is one of the most dangerous work sectors, with more than 108,000 workers killed yearly on construction work sites worldwide according to the International Labor Organization. Elements such as working at high height, use of hazardous machines and tools, and electric current are some of the chief issues, and also extreme physical work that affects the workers’ bodies.

Corruption

A big volume of funds flow through projects in the construction sector, which results in a high degree of corruption; as interaction with government officials is made by both public and private investments. Also, complex construction projects often involve subcontractors that increase the risk of third-parties initiating or soliciting bribes.

Labor exploitation in the migrant workforce

The migrant-workforce constitutes a significant part of the construction industry. These persons are particularly vulnerable to labor exploitation and discrimination, due to many intersectional factors: political/social and economic. Issues of exploitation include neglected social and legal protection, low wages, risks of human trafficking through depriving of visa portability, confiscation of passports, and debt bondage.

“Achieving state-of-the-art purchasing practices globally in Perstorp while creating a best sustainable price is one of my top priorities. By using Kodiak Rating Rating we have made a first step in applying common global standards and processes to assess suppliers across all Perstorp units. This will enable us to enhance collaboration with the best suppliers and create visible key performance indicators to drive continuous improvement.”

Kodiak Rating’s supplier relationship management solution aids (but is not limited to) the management of the following risks that may materialize in your supplier’s organizations:

Water Use

The chemical manufacturing industry is the largest single consumer of water by sector out of the OECD countries. Water is used for the cleaning of machinery, packaging systems and pipelines. The large amount of process water used causes pollutants to be released through wastewater, which require responsible management.

Hazardous Substances

Chemicals can contain substances that are toxic to the environment and hazardous to human health. Restrictions and regulations of chemicals are set to control hazard substances (e.g. REACH), and to improve the protection of humans and the environment. Due to the existent risks of hazardous substances, the classification, labeling and packaging are crucial elements to control and manage chemicals.

Occupational Health & Safety

Chemical manufacturing involves the processing of raw materials. Employees in the chemical industry are exposed to the risks of health damages, due to working with toxins in the use and manufacturing of chemicals. Poor working safety conditions, inadequate protective equipment and ineffective process control can result in severe danger for employees, such as explosions of volatile materials.

Kodiak Rating’s supplier relationship management solution aids (but is not limited to) the management of the following risks that may materialize in your supplier’s organizations:

Food Safety

Issues with the safety and quality of food are of great concern in the food sector. The risks are brought on by several food control issues that currently are being debated at both the national and international levels, regarding, for instance: allergens, genetically modified foods and contaminants (including pesticides). All activities related to food production and handling involve some hazardous risks. Potential risk areas include the food processing operation, post-preparation handling or even food safety practices in the home of consumers.

Land rights conflicts

As the population grows and incomes increase around the globe, agricultural land for production is compromised. Environmental damage and human rights issues are common problems of land conversion, where consent of expansion with local communities remains crucial in avoiding conflicts. Indigenous populations often inhabit areas of expansion, and these rightful landowners must be recognized and duly consulted and compensated. Otherwise, resistance to projects can develop.

Biodiversity & deforestation

It is a major challenge to provide sufficient food for the world population while protecting biodiversity. The conversion of natural ecosystems to crops and livestock production is the main driver of deforestation. Unsustainable agriculture is one of the main causes for this, as they disturb or remove the natural habitats of these animals.

Kodiak Rating’s supplier relationship management solution aids (but is not limited to) the management of the following risks that may materialize in your supplier’s organizations:

Poor working conditions

The pursuits of lower production costs drive textile producers to place production in high-risk developing economies. Here, working conditions are severely poor. Due to the highly competitive nature of this industry, wages and working conditions are commonly sub-standard or exploitive, in relation to downward pressure. Potential labor violations include deduction of wages, forced overtime and neglected health and safety concerns. This has most recently been placed before the world’s attention with the collapse of the textile building in Dhaka, Bangladesh that killed over 1000 people.

Association rights

Rights to freedom of association and collective bargaining is often violated in the textile sector. Workers don’t join unions for fear of dismissal, and union leaders are threatened and experience difficulties in contacting workers. Inequality amongst traders, textile factories and workers prevail.

Water waste

Water waste carries a host of different chemicals from the processing of dyes. The World Bank estimates that textile dyeing and treatment contribute to 17-20% of the total industrial water pollution. In many pollution sites, water waste from the dye industry is directly dumped into surface waters without treatment.

Kodiak Rating’s supplier relationship management solution aids (but is not limited to) the management of the following risks that may materialize in your supplier’s organizations:

Testing ethics

Many different biological and chemical substances are used in the manufacturing of pharmaceuticals, such as bacteria and viruses in the applications of vaccine production. Many agents used in pharmaceutical research, development, and manufacturing are potentially hazardous to humans. Therefore, the testing of these pharmaceuticals needs to be conducted with caution. Motivation for participation in pharmaceutical testing must be considered – especially – in poor and vulnerable communities, including the providing of sufficient information about potential short and long-term side effects.

Consumer Health & Safety

The chemical substances of pharmaceuticals can have adverse effects on the human body (e.g. carcinogenic effects), and side-effects and symptoms of drugs as well. Quality and control management in the supply chain are elements of risks, but also opportunities for discovering and correcting pharmaceutical hazards and effects. Consumer health and safety also concern labeling and responsible marketing, as inappropriate or ill-informed use of chemicals/pharmaceuticals can lead to illness or death.

Water pollution

Pharmaceuticals can have devastating effects on the environment if hazardous or bioactive substances find their way into rivers, lakes or even drinking water. Environmental effects imply contamination of water supplies or local sources used by nearby communities or wildlife. Risks for water pollution include pharmaceutical substances, the disposal of unwanted medicines, and sewage treatment.

Kodiak Rating’s supplier relationship management solution aids (but is not limited to) the management of the following risks that may materialize in your supplier’s organizations:

Energy Consumption

One of the most critical factors is the massive consumption of energy during mining, component manufacturing and recycling of electronic equipment. In addition, there is a high energy consumption of electronic products themselves.

Minerals & Conflict

The electronics industry consumes quantities of various metals, such as tin, tantalum, cobalt, and gold sourced from conflict areas. Conflict resources are natural resources whose systematic exploitation and trade contribute to, benefit from, or result in the commission of serious violations of human rights, violations of international humanitarian law and/or violations amounting to crimes under international law.

Kodiak Rating’s supplier relationship management solution aids (but is not limited to) the management of the following risks that may materialize in your supplier’s organizations:

Carbon Dioxide emissions

Combustion of fossil fuels, such as gasoline and diesel, gives rise to carbon dioxide emissions, which contributes to the greenhouse effect and adversely affects the climate. Fossil fuel use is the primary source of carbon dioxide emissions, and the CO2 emissions in the road transport sector (automobiles included) account for a great share of this emissions, (around 20%, in 2014, according to the International Energy Agency).

Toxic Waste

Auto manufacturing plants create a wide range of waste like production waste, scrap, and end-of-life products. Materials extracted from vehicles have a major environmental impact and require a large amount of energy for production and disposal. Therefore, the hazardous waste routinely generated during automotive work acquires proper management.

Violations in mineral sourcing

The sourcing and production of raw materials, such as cobalt, mica, rare earth metals, platinum, iron ore and bauxite, are afflicted by human rights violations and environmental damage. Since the automotive industry uses a lot of electronics, the use of these materials are particularly high in this sector. The sourcing of mica, for example, which is commonly used as raw material in this sector, often comes from India. About 90% of the mica mines are illegal, and nearly 20,000 children work in illegal mines.